Marketing Thoughts by Domus Inc.

It was only a matter of time before big consumer packaged goods (CPG) companies started marketing directly to consumers, bypassing their traditional retailing partners. For years, those partners have been squeezing the CPG companies as much as possible. And, if that wasn’t enough, retailers have been offerring more and more private-label alternatives to their CPG “partners”.

So now Procter and Gamble just announced that they are setting up their first ecommerce site, initially as an “experiment” rather than as competition to their partners. But I presume private-label brands started out as an “experiment” by retailers also.

The shape and pattern of consumer purchasing continues to evolve, and as marketers, we have to remain nimble in our approaches. Otherwise, the share and power of our brands will erode. On the other hand, the opportunities for those of us with a pulse on the market should be exciting.

Domus is a full-service marketing communications agency based in Philadelphia. For more information, visit us at http://www.domusinc.com.

Marketing research data shows that store brands have been making inroads against branded consumer packaged goods items. (E.g., see Progressive Grocer.) But statistics don’t always tell the whole story. One thing reports like this don’t show, though, is why consumers are switching. It would be interesting to find out how many consumers are deliberately choosing store brands vs. no longer having a choice.

From my own personal experiences, I’ve noticed that several of my preferred name brand items are harder or impossible to find at many supermarkets – their shelf space has been taken over by store brands. Therefore, although I might have preferred a name brand in some cases, I had little or no choice (barring shopping elsewhere).

This is a question name brand manufacturers might want to consider. Their future marketing strategies might need to be adjusted if they are losing sales because of consumer choices or because of retailer decisions.

Domus is a full-service advertising, public relations, and social media marketing agency based in Philadelphia. Please visit our web site at http://www.domusinc.com for more.